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Certainly, that is the theory, but capitalism does not always optimize for worker salaries. You can find examples of what you describe happening, but you can a
by lsc 11y ago
Certainly, that is the theory, but capitalism does not always optimize for worker salaries. You can find examples of what you describe happening, but you can also find examples of the opposite:
For the last few decades, the perception is that the economy is not expanding at a rate required to "float all boats." as it were. In fact, I think your example is a very good one:
>This "lump of labor fallacy[1]" was used when women joined the workforce. The worry was that with only so much work to go around, the additional workers would cause mass unemployment. But we didn't get unemployment, we got a larger economy with a higher standard of living.
I think that most men who are not in our industry would disagree. If you look at the inflation-adjusted income for a man from the '70s and now... and it hasn't grown a whole hell of a lot. One can make a strong argument (supported by the meteoric rise in woman's salaries during the same period) that this is largely the effect of effectively doubling the number of workers available for most jobs over the same period.
I mean, obviously, from a justice point of view, this is righting a very old wrong. It's great that women are on a more equal footing; it's fair. I'm not saying that this is bad overall... I'm just giving an example, that can be tracked with publicly available statistics, of how the average wages of a group that is employed can be pushed down by adding more laborers to that group.
- panarky 11y agoYour example is probably correlation, not causation. Median incomes in the US stagnated at the same time as more women entered the workforce, but that does not mean that the latter caused the former. Stagnating or declining middle-class incomes in the US is probably caused by (1) exporting manufacturing jobs to Asia, and (2) weakening organized labor. It may also be caused by (3) deregulation which increases the share of income going to capital and decreases the share going to labor. If you look at the experience in Canada during the same time, median incomes grew faster than in the US, even though Canada was also adding women to the workforce. This is probably because Canada did not weaken organized labor as much as the US did.
- lsc 11y ago>Median incomes in the US stagnated at the same time as more women entered the workforce, Perhaps I do not understand what you mean by "median incomes". I was breaking it out to median income for men (which did stagnate) and median income for women (which went from next to nothing to almost the same as median income for men) Hm. Or perhaps I'm not thinking through the implications of 'median' which would dampen the effect of bringing a bunch of zeros up to 'mildly below average'